TESTING ENSURES ACCURACY OF UNUMPROVIDENT QUOTES ON IPIPELINE

As part of an effort to ensure the accuracy of long-term care insurance quotes that reach wholesalers and agents who subscribe to iPipeline's (Exton, PA) Web-based quote engine, Chattanooga-based UnumProvident has run test plans against rating and contractual information related to its current long-term care product series.

According to UnumProvident's Guy Bertsch, vice president, core market development, clearinghouses such as iPipeline are not required to contact insurance companies before adding their quotes to the clearinghouse's service. This means that, in the past, numerous providers added UnumProvident's quotes without the carrier's knowledge, relates Bertsch. Although broader distribution of a carrier's quotes is generally beneficial to an insurance company, accuracy can be a serious problem. iPipeline was the first clearinghouse, reports Bertsch, to approach the insurer regarding accuracy.

"Accuracy is very important," he says. "The last thing an agent wants to do is present a rate to a customer that is inaccurate." In order to ensure that the quotes presented on iPipeline match UnumProvident's true rates, the carrier conducted tests that involved running rates on UnumProvident's system and comparing them to those run on iPipeline's system.

UnumProvident tested "enough samples to feel confident that the overall structure of the rating engine was sound and that the accuracy of base rates and factors in iPipeline met our expectations," reports Bertsch. "Finally, we also ran tests to make sure that variances by state were reflected in iPipeline's system."

Vendors that do not contact insurers about using their quote information usually obtain the rate books and software that is provided to that carrier's agents. The clearinghouses then load this information onto their systems, according to Bertsch, who notes that all of this information is publicly available.